Markham couple warns of disclosure rules after claim rejection
A Markham couple is facing loan payments on a vehicle they no longer have after their auto insurer refused a collision claim involving their son, underscoring the obligation to disclose who lives in the household and who regularly uses a vehicle.
Mohamed and Vivi Mirza told CTV News they were left frustrated when a claim related to a serious crash was denied. Their son, Adam, had temporarily moved into their Markham home and was driving their 2019 Mitsubishi RVR SE to a medical appointment when the collision occurred. The couple acknowledged they had not updated their insurer to reflect that their licensed son was now living with them and operating the vehicle with permission.
“I feel very frustrated and very disappointed that this has happened to us,” Mohamed Mirza said. The insurer later wrote: “You failed to disclose to your broker or Wawanesa that Adam operates the vehicle with your permission and lives in your household. As such, your right to recovery is forfeited and your claim is denied.”
The couple’s insurer, Wawanesa, communicated the basis for the denial in a letter shared with the family. The Mirzas said they appealed the decision but were unsuccessful. They noted they still owe about $26,000 on the financed vehicle and are continuing monthly payments even though the car is a total loss.
Industry guidance emphasizes that insurers evaluate risk based on who actually lives in a home and who drives a covered vehicle. The Insurance Bureau of Canada (IBC)
